Bernadette Wicks
Senior court reporter
3 minute read
2 Jul 2020
5:05 am

Municipalities are ‘teetering on the brink of collapse’

Bernadette Wicks

The financial health of 79% of the country’s municipalities is, at best, 'concerning' and, at worst, requires 'urgent intervention'. Just under a third were in a 'particularly vulnerable financial position'.

Auditor-General Kimi Makwetu. Picture: Gallo Images

The auditor-general has warned local government could be headed for financial ruin, with the latest municipal audit results having revealed high levels of noncompliance, along with a R7 billion spike in irregular expenditure. “The financial statements show increasing indicators of a collapse in local government finances,” Kimi Makwetu wrote in his media statement of the 2018- 2019 results. The financial health of 79% of the country’s municipalities was, at best, “concerning” and, at worst, required “urgent intervention”. Just under a third were in a “particularly vulnerable financial position”. Irregular expenditure increased from R25.2 billion in 2017/2018 to R32.06 billion in...